Post-Discharge

Congratulations! You've received your Discharge

Are you receiving letters from discharged creditors?

Are you receiving letters from discharged creditors?

Discharge from bankruptcy

After receiving your Order of Discharge, safeguard it as you would any other important document. 


  • Approximately 30 to 60 days after discharge, review your credit report. You can obtain a free copy of your credit report by visiting annualcreditreport.com. We suggest reviewing ONE report every four months to ensure your accounts are being properly recorded as discharged in bankruptcy. 


  • If you determine an account that should have been discharged still reflects a balance or marked as “in collection” etc., please initiate a Dispute. You can do so online via all three Bureaus (TransUnion, Experian and Equifax).  

Are you receiving letters from discharged creditors?

Are you receiving letters from discharged creditors?

Are you receiving letters from discharged creditors?

Bill

If it's been longer than 60 days and you continue to receive credit card statements from store cards and/or medical bills. 

  1. Mail a copy of your Order of Discharge to the creditor
  2. Check your credit report to ensure this credit line was properly closed
  3. Contact our office so we can provide you with a plan of action to deal with this creditor


If a home or vehicle was surrendered in bankruptcy, you will continue to receive Notices regarding the disposition of the loan and/or physical property until the matter is concluded. While your financial obligation has ended, it may take time to finalize the surrender. 



Credit Score

Are you receiving letters from discharged creditors?

Credit Score

Credit Report

Contrary to popular belief, your credit score increases after discharge. 


Approximately thirty percent (30%) of your credit score is is determined by the amount of debt and utilization of credit lines. Upon discharge, your balances (minus Court obligations and Student Loans) are zeroed out and this percentage drops to zero!


You can monitor your credit score using various free and paid subscriptions. Keep in mind different lenders use different scoring models to determine loan eligibility and interest rates.  


To keep your score trending upward:

  1. Pay your bills on time.  
  2. Spend no more than 30% of your credit limit
  3. Monitor your credit report

Discharge: In Depth

Order of Discharge

A Discharge only applies to debts that arose up to the date you filed.

Creditors cannot collect discharged debts - This order means that no one may make any attempt to collect a discharged debt from the debtors personally. For example, creditors
cannot sue, garnish wages, assert a deficiency, or otherwise try to collect from the debtors personally on discharged debts. Creditors cannot contact the debtors by mail, phone, or otherwise in any attempt to collect the debt personally. Creditors who violate this order can be required to pay debtors damages and attorney's fees.


Remember, you may receive Notices regarding the disposition of debts such as surrendered home or vehicle. This is not an attempt to collect a debt and the reason why you're receiving this notice is typically stated prominently to avoid confusion. 


Some debts are not discharged:

  • debts that are domestic support obligations
  • debts for most student loans
  • depending on the type of taxes or when your taxes were filed - tax debt may remain
  • debts that the bankruptcy court has decided are not discharged in this case
  • debts for most fines, penalties, forfeitures, or criminal restitution obligations
  • debts for certain types of loans owed to pension, profit sharing, stock bonus, or retirement plans
  • debts for death or personal injury caused by operating a vehicle while intoxicated.

 

Co-Obligors – A discharge does not stop creditors from collecting from anyone else who is also liable on the debt.

Bankruptcy law book and gavel

Bankruptcy law book and gavel